US Job Openings Surge to 7.5 Million in September, Reversing Labor Market Slump

Key points

• Job openings reached 7.52 million, up from 7.19 million in August, exceeding analyst expectations.
• Gross hiring rose by 131,000 to 5.4 million, while layoffs fell to 1.64 million, the lowest since March 2025.
• Voluntary quits jumped to 3.36 million, the highest in 18 months, indicating increased worker confidence.
• The October jobs report is forecast to show 59,000 to 65,000 new positions, an improvement from September's 29,000.
• Economic headwinds, including high interest rates and inflation, may limit future hiring growth.

Background

This report follows a period of sluggish hiring, with September job growth falling to 29,000, far below expectations. Wage growth also slowed to a five-year low in September, easing fears of Federal Reserve rate hikes. The current rebound in job openings contrasts with the weak payrolls data from the previous month, suggesting a potential shift in labor market dynamics.

How outlets are covering it

AP News and ABC News emphasize the sharp rise in job openings as a hopeful sign for hiring, noting that openings now exceed the number of unemployed. CNBC highlights the positive signals for the labor market, including increased hiring and decreased layoffs, but also notes the impact of high interest rates and inflation on business expansion. All sources agree that while the trend is encouraging, sustained improvement requires continued momentum over several months. Economists like Heather Long and Nicole Bachaud offer mixed views, with Long seeing the rise as a positive sign despite headwinds, and Bachaud cautioning that high costs may limit future hiring.

Why it matters

The surge in job openings and hiring, coupled with low layoffs, suggests a potential stabilization in the labor market. This could influence consumer confidence and economic growth, especially ahead of the November 3 midterms. However, persistent inflation and high interest rates may constrain further hiring, making the sustainability of this trend uncertain.

What to watch

The October jobs report, released on Friday, is expected to show 59,000 to 65,000 new jobs, with the unemployment rate holding at 4.2%. Analysts will monitor whether the September rebound in job openings translates into sustained hiring growth in the coming months. The Federal Reserve's stance on interest rates will also be a key factor in determining future labor market trends.